You probably know by now that stylists have two options when it comes to how they plan to work. The approaches have their pros and cons, so you need to weigh them all before making a decision. Renting a booth or chair at a salon is the best option for those who are qualified and will help them to grow their business. Some firms like Signature Salon Pro can also provide you rental space for barbers.
You are essentially entering into an agreement with the salon owner to rent a chair or booth. It's very similar to a landlord-tenant agreement. You are renting space in the salon, not an apartment. You can conduct business in the salon by paying an agreed-upon monthly or weekly fee.
This is in many ways akin to running a business within another business. You can keep all the profits from your clients, regardless of how much rent you pay, when you rent a chair at a salon. You are responsible for finding clients, managing your schedule and purchasing your tools and supplies.
It all comes down to accountability. If you rent, you're responsible for:
Rent to the salon owner
You can choose your own colors, products, retail, and tools
You can manage your own bookings and payment systems
Manage your finances and taxes
Your own marketing strategy
You are only responsible for being physically present at the salon and working when you're there. Because you are an employee of the salon, they will usually take care of all of these things.